Internet providers fees and fines not helping during recession: [11th Dec 2009]

>>> The Federal Communications Commission (FCC) is questioning Verizon on why it is doubling its termination fees for Smartphone customers and why those without a data plan are being charged for accidentally accessing their mobile Internet service. Verizon increased their termination charges from $175 to $350 last month blaming it on the need to recoup losses from offering free or discounted Smartphones. The FCC have asked Verizon to provide details of how they inform customers of the charges and whether a grace period is offered. Customers who pay the full price for their Smartphone are currently able to avoid the fee. Verizon are also being criticized for charging $1.99 to customers who accidentally access the Internet on their phones. It has been suggested that the button for accessing the web has been purposely placed in a position where it is more likely to be pressed. Verizon has until December 17 to respond to the FCC.


>>> Motorola's Droid handset which is available only on the Verizon network has been ranked as the top gadget of 2009 by Time magazine, three places ahead of the iPhone. Praised for its large touch screen and qwerty keyboard, the Droid has been described as a "hefty beast" by the magazine. It is thought that the iPhone missed out on the top spot as most of the innovations this year have been add-on products.


>>> AT&T have been looking into ways of encouraging its customers to use its wireless network less as it struggles to keep up with demand. 40% of the demand comes from just 3% of its customers who use the iPhone, which runs exclusively on the AT&T network. Chief Executive for AT&T Ralph de la Vega has said that no other provider in the world is seeing the levels of penetration into the Smartphone 3G market that AT&T have experienced.

A survey conducted by Consumer Reports has found that AT&T have the lowest levels of customer service in the US and was the only carrier to receive below average marks for voice quality. They also received below average in all areas of customer service, but did manage average for their data and text service. AT&T still have the most expensive call plans at an average of $86 a month for voice services and $126 a month for voice with data.

Despite this, AT&T is rolling out a 24mbps service to parts of Austin as part of a limited pilot service. Known as Max Turbo, the new Internet service is offering speeds which are up to 4 times that offered to most in the area. Residents will have to pay $65 a month to have the service as part of their bundle, but not all residents will be able to receive the service due to distance restrictions.


>>> A Utah resident has filed a class-action lawsuit against Qwest after he claimed they failed to live up to their "price for life" promotion. His rate for broadband services increased from $31.99 to $49.99 per month despite signing up to the promotion. Qwest have declined to comment on the case, but another lawsuit against the company involving the use of a termination fee has also come to light. The lawsuit involves the charging of $200 on the cancellation of services which were never long term commitments. Qwest have said that they charge the fee regardless of the reason for stopping the service.


>>> It has been announced that Nokia is to close its 2 flagship stores in New York and Chicago. It will also be closing one of its London stores. The move comes as part of its commitment to concentrate on selling services and applications through its online store, Ovi. It has also said it will limit the number of devices it launches as consumers are becoming more interested in applications rather than hardware. Nokia still has a 37% worldwide market share in cell phones, but are behind when it comes to Smartphones.


>>> It seems likely that NBC Universal will soon be controlled by cable provider Comcast. The cable provider looks set to purchase a controlling stake in NBC and in return will offer General Electric $6.5bn along with $7.5bn in programming. Comcast will not only distribute programming but will have a hand in making the content. The plan must pass with regulators who are asking for details on what the impact on the consumer may be. It is thought that Comcast may have to make some concessions.


>>> The FCC addressed a group of 50 people at the Silicon Valley Churchill Club this week to explain the purpose of the Broadband Plan. The plan is due to be submitted to Congress on February 17 and the FCC have been asking for input and comment from both consumers and those involved in the technology side. The main areas of the plan are the need for more wireless spectrum, changes to the TV market, how to quantify how users manage the services, security, privacy, cost and how to ensure the service is delivered to institutions such as schools and hospitals. The main area of contention for the Silicon valley group was the allocation of spectrum and how long reaching will the effect be for future.